Advertising Management: A Case Study on Virgin Airlines and V Energy Drink

Running head: ADVERTISING MANAGEMENT 1
ADVERTISING MANAGEMENT
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ADVERTISING MANAGEMENT 2
Table of Contents
Part A: Advertising Brief...........................................................................................................4
1. Background............................................................................................................................4
1.1. The brand........................................................................................................................4
1.2. Competitors.....................................................................................................................4
1.3. Buyer analysis.................................................................................................................4
1.4. Current advertising..........................................................................................................5
2. Advertising Problem..............................................................................................................5
3. Objectives...............................................................................................................................5
4. Target Market.........................................................................................................................6
4.1. Target..............................................................................................................................6
4.2. Consumer insight............................................................................................................6
5. Budget....................................................................................................................................7
6. Creative strategy.....................................................................................................................7
7. Media strategy........................................................................................................................8
7.1 Media mix with budget allocation....................................................................................8
7.2 Media scheduling.............................................................................................................8
8. Mandatories..........................................................................................................................11
Part B: Justification - Supporting evidence..............................................................................12
1. Background..........................................................................................................................12
1.1. The brand......................................................................................................................12
1.2. Competitors...................................................................................................................12
1.3. Buyer analysis...............................................................................................................14
1.4. Current advertising........................................................................................................15
2. Advertising problem.............................................................................................................16
3. Objectives.............................................................................................................................16
4. Target Market.......................................................................................................................16

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4.1. Target............................................................................................................................16
4.2. Consumer insight..........................................................................................................19
7. Media strategy......................................................................................................................20
7.1 Media mix with budget allocation..................................................................................20
7.2 Media scheduling...........................................................................................................20
8. Mandatories..........................................................................................................................21
References................................................................................................................................23

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Part A: Advertising Brief
1. Background
1.1. The brand
Virgin Airlines is a part of the Virgin Group in Australia. The formation of Virgin Group was
conceived by Sir Richard Branson and it has become one of the most respected brands in the
21st century. The companies of the Virgin Group operates in various sectors like
transportation, financial services, media, music, fitness among others. The group strives
towards making a difference and focuses on empowering the employees, delivering high
quality service and monitoring feedback of the customers for constant improvement and
innovation (Virgin Australia, 2019).
The V energy drink is the product chosen for discussion. The product was launched in
Methven, New Zealand in 1997 and two years later in Australia. The distinctive taste and its
non-fruity flavour adds to its uniqueness (V Energy, 2019).
1.2. Competitors
The Virgin Australia Airlines face tough competition from Qantas Airways and Tiger
Airways Private Limited. Tiger Airways commenced its operation on 23 November 2007. In
2012 the company announced to sell 60 percent of its holdings to Virgin Australia. Qantas
Airways founded in 1920 is one of the oldest airlines in Australia and has aimed to earn
record revenue in the financial year 2019. These two airlines exhibits maximum competition
to the Virgin Australia Airlines. The closest competitors of V energy drink are Monster and
Red Bull Energy Drink. The V energy drink with its iconic slimline can and the flavour of
guarana berries became popular among the masses instantly. The earnings of Monster energy
drink increased from $820.7 million in 2017 to $993 million in 2018 (Lahiff, 2019). The
brand Red Bull has garnered immense popularity since its launch in 1987 and sold 75 billion
cans ever since. The drink has further launched a line of organic sodas of which three
products do not contain caffeine (Forbes, 2019).
1.3. Buyer analysis
The Virgin Australia Airlines is focused on providing quality services for corporate travellers
as well as leisure travellers. For increasing the market share the company has focused on
increasing the business and government travellers. The airlines has introduced the V energy
drink which is favoured by the gym goers and young adults due to its smooth and sweet taste.

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The absence of the fruity flavour and bitter aftertaste is expected to increase its popularity
among the passengers of the airlines to a great (Parsons, 2019).
1.4. Current advertising
The Virgin Australia Airlines has used the medium of Metropolitan television and press,
magazines, metropolitan radio, out of home advertising and the digital platform for its
marketing. It can be found that the airline lacks in its investment on regional press, cinema
and direct mails. The V energy drink has mostly invested on out of home advertising. It lacks
on the areas of Metropolitan television, metropolitan radio and on the digital platform. The
strong advertising of the Virgin Australia Airlines and the association of the product with the
airlines adds leverage to the popularity and sales of the product (Virgin, 2019).
2. Advertising Problem
The Virgin Australia Airlines have limited budget for digital marketing and therefore the
marketing strategies need to be precise and effective. The airlines therefore need to connect
with the customers and develop a relationship that would add on to its sales. The airlines has
always been focused on making the traveling experience of the customers fun and
memorable. They emphasize on serving the passengers with the best quality of food and
service and therefore they have associated themselves with the V energy drink which is of
superior quality and taste and preferred by a large section of passengers (The Economist,
2014).
3. Objectives
The objectives of advertising include informing, persuasion and reminder. In the first stage a
product is introduced to make the consumers have a basic understanding of the product. The
second objective is the persuasion of the customers employing various approaches like
emphasising on product quality, uniqueness, service among others. The reminder ads
reinforces the brand message in the marketplace (Kokemuller, 2019). The objectives of V
energy drink have been indicated below:
 To increase brand awareness up to 7% of the target in the financial year 2019-2020
 To create the brand position of V energy drink among the target customers of Virgin
airlines

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4. Target Market
4.1. Target
Virgin Airlines mainly targets the domestic leisure market of Australia as it is a low-
cost carrier and this market tends to be quite price elastic. Young passengers are the target of
Virgin Airlines because they prefer energy drink at the time of travelling. Virgin Airlines
could also target the business people as well because they also like to have energy drink like
V Energy.
Young students are the particular segment, Virgin Airlines would like to target
because a number of international students travel Australia every year. The most viable
segment is the passengers, who belong to the age group of 18-30. Young passengers
especially the students who travel to state capital cities and surrounding territories can be the
target audience of Virgin Airlines to offer V Energy Drink (Goodrich, Swani & Munch,
2018). Psychographic segmentation strategy can also be used to target the young students
because they have interest in purchasing energy drinks and simultaneously they are
concerned about price as well (Vallespín, Molinillo & Muñoz-Leiva, 2017).
4.2. Consumer insight
Consumers prefer to purchase V Energy Drink because this non-alcoholic energy
drink with low sugar level is available at comparatively lower price. The young people
especially students, gym-goers prefer it because it is very refreshing.